Arizona Real Estate License Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

To determine the total value of Lot A when one lot is 40% less than the other, we first need to establish the relationship between the values of the two lots based on their selling price.

Let’s denote the value of Lot B (the more expensive lot) as \( x \). Since Lot A is 40% less than Lot B, we can express the value of Lot A as \( x - 0.4x = 0.6x \).

The combined value of both lots must equal the total property value of $205,000. Therefore, we can set up the equation:

\[

x + 0.6x = 205,000

\]

This simplifies to:

\[

1.6x = 205,000

\]

To find \( x \), we divide both sides by 1.6:

\[

x = \frac{205,000}{1.6}

\]

Calculating this gives:

\[

x = 128,125

\]

Now that we know the value of Lot B, we can find the value of Lot A. Since we have established Lot A is worth 60% of Lot B, we calculate Lot A’s value as